How Small Companies Benefit From Offshoring and Outsourcing

innovent - September 4, 2015 - 0 comments

It’s not just big companies that can outsource their processes; small companies can also benefit. Small companies often outsource their payroll processing, accounting, distribution, and other important functions so they focus on their core business. Outsourcing is a way to lower the cost of production without affecting quality of work.

Offshoring to countries like the Philippines has many advantages. A senior diplomat with the Australian government said “Each day 500,000 Filipinos get out of bed to work for American companies. They are the secret sauce that helps to make American companies globally competitive. Wouldn’t Australia be better off if instead these people got out of bed and helped make Australian companies globally competitive?”

Small companies can reap many benefits from offshoring because through it, they gain access to skills and experience that might not be readily available at home.

Small companies can also start new projects quickly when they outsource some of their functions. This is because a good outsourcing firm such as Flat Planet has the resources to start projects quickly. Doing the same project in-house might take weeks or months because small companies often do not have the same recruitment capacity or onboarding processes and infrastructure scalability. If a project requires up front expenditure (such as buying more computers, servers or space constraints in your current office), the startup process may become even harder to begin.

Through outsourcing, small business with 50 or less employees can focus on their core business. Small companies often have limited resources and few managers who have time to spare.

Outsourcing can help businesses to give more time and attention to work functions that focus on customer service and less to secondary activities.

When they outsource, small companies will be able to level the playing field. They can do with the help of outsourcing companies that match the in-house support services that larger companies can immediately access. As an article on allbusiness.com titled “The Benefits of Outsourcing for Small Businesses” stated, “Outsourcing can help small firms act ‘big’ by giving them access to the same economies of scale, efficiency, and expertise that large companies enjoy.”

Instead of hiring new employees, outsourcing often frees up fixed costs and turns them to variable costs, and have the provider handle the employer risk.

At Innovent we believe the best match for Outsourcing your software development is our unique Dual Shore approach. A local account/project manager in our Sydney office, coupled with the technical skills of our Philippines teams. Contact us today to find out how this approach will benefit your business on 1300 781 681 or info@innoventsoftware.com.au